Fannie Mae Priced $1 Billion Multifamily DUS REMIC (FNA 2022-M1) Under Its GeMS Program

BY PR Newswire | AGENCY | 01/24/22 12:30 PM EST

WASHINGTON, Jan. 24, 2022 /PRNewswire/ -- Fannie Mae (FNMA) priced a $1 billion Multifamily DUS? REMIC under its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS?) program on January 19, 2022. FNA 2022-M1 marks the first Fannie Mae GeMS issuance of 2022.

"We are pleased to kick off 2022 with another milestone in the market's transition away from LIBOR, with our first multifamily REMIC quoted using the spread to the Secured Overnight Financing Rate (SOFR) swap curve," said Dan Dresser, Senior Vice President, Multifamily Capital Markets & Pricing. "Market participants had begun socializing the use of the SOFR swap curve ("p-spread") when quoting fixed-rate ACMBS trades in late 2021 and the transition of new-issue ACMBS to this benchmark is one more step in that journey. The M1, with its discount, 10-year fixed-rate collateral, found strong demand in the market with the A2 tranche pricing at a 52-basis-point spread to the SOFR swap curve, equating to a 26-basis-point spread to the LIBOR swap curve."

All classes of FNA 2022-M1 are guaranteed by Fannie Mae (FNMA) with respect to the full and timely payment of interest and principal. The structure details for the multi-tranche offering can be found in the table below:

Class

Original Face

Weighted Average
Life

Coupon (%)

Coupon
Type

Spread*

Offered

Price

A1

$64,600,000

6.47

1.669

WAC

S + 36

98.78

A2

$737,643,749

9.69

1.669

WAC

S + 52

96.13

A3

$200,000,000

9.74

1.580

Fixed

Not Offered

Not Offered

X3

$200,000,000

9.24

0.089

WAC IO

Not Offered

Not Offered

Total

$1,002,243,749






* The spread on FNA 2022-M1 was priced using the SOFR swap curve

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Group 1 Collateral




UPB:

$1,002.243,749

Collateral:

43 Fannie Mae DUS MBS

Geographic Distribution:

TX (18.74%), UT (11.22%), FL (9.11%)

Weighted Average Debt Service Coverage Ratio (DSCR):

1.96x

Weighted Average Loan-to-Value (LTV):

62.9%

For additional information, please refer to the Fannie Mae GeMS REMIC Term Sheet (FNA 2022-M1) available on the Fannie Mae GeMS Archive page.

About Fannie Mae (FNMA)
Fannie Mae (FNMA) helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of people in America. We partner with lenders to create housing opportunities for people across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit:
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Certain statements in this release may be considered forward-looking statements within the meaning of federal securities laws. In addition, not all securities will have the characteristics discussed in this release. Before investing in any Fannie Mae (FNMA) issued security, you should read the prospectus and prospectus supplement pursuant to which such security is offered. You should also read our most current Annual Report on Form 10-K and our reports on Form 10-Q and Form 8-K filed with the U.S. Securities and Exchange Commission ("SEC") available on the Investor Relations page of our Web site at www.fanniemae.com and on the SEC's Web site at www.sec.gov.

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SOURCE Fannie Mae (FNMA)

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